Hanoi seminar identifies business opportunities of EVFTA

The newly-signed EU-Vietnam Free Trade Agreement will provide opportunities for Vietnamese businesses to boost their exports to high-quality markets and import high-quality equipment and inputs at lower prices, said Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry.

At a seminar in Hanoi on Wednesday on identifying business opportunities of the newly-signed EU-Vietnam Free Trade Agreement, Mr. Loc called on domestic businesses to restructure their management and technology to meet the needs for rules of origin and technical barriers and establish a system for risk prevention. Mr Loc said: To take advantage of reducing tariffs to zero percent for almost all tax lines, it requires efforts from both the State and enterprises. Institutional reform should continue and regulations of the EVFTA and other FTAs should be made relevant to Vietnamese laws, so that the deals will benefit Vietnamese businesses and economy to the maximum.

Experts said when the EVFTA takes effect, Vietnamese producers of garment and textile, footwear, and electronic items will benefit a lot from the agreement. But the competitiveness will be fiercer among foreign, FDI, and domestic businesses. Nguyen Hai Minh, Vice Chairman of the European Chamber of Commerce (EuroCham) in Vietnam, said: The government must inform businesses, particularly small and medium-sized enterprises, of EVFTA negative impacts and advantages, as well as what they need to do to enjoy those benefits. It's necessary to adopt long-term measures related to communications, training, and policy on accessing loan to improve businesses' competitive edge.

At the seminar, the Ministry of Industry and Trade said the EVFTA will be submitted to National Assembly for approval in October and hopefully the deal will take effect from 2020.

Source: VOV5